The Central Bank of the Philippines reported that loans extended by universal and commercial banks rose 12.1 percent year on year in May, faster than in the previous month. The increase was linked to banks’ expectations of steady credit demand from businesses and households in the second quarter of 2026. Outstanding loans to residents, which make up most bank lending, increased 12.6 percent. Business lending expanded by 11.7 percent in May, with growth led by electricity, gas, steam and air-conditioning supply at 32.9 percent and transportation and storage at 21.4 percent. Lending also increased for wholesale and retail trade and motor vehicle repair at 10.1 percent, real estate at 7.3 percent and manufacturing at 6.4 percent. Consumer loans to residents grew 19.0 percent, slightly below the previous month’s 19.6 percent pace, reflecting slower growth in credit card and motor vehicle loans. The central bank said it tracks bank lending because it is a key monetary policy transmission channel and will continue to keep lending conditions aligned with its price and financial stability objectives.
Central Bank of the Philippines2026-07-07
Central Bank of the Philippines reports universal and commercial bank loan growth accelerated to 12.1 percent in May
The Central Bank of the Philippines said loan growth at universal and commercial banks accelerated to 12.1 percent year on year in May, with resident loans up 12.6 percent. Business lending rose 11.7 percent, while consumer lending increased 19.0 percent but slowed slightly from the previous month. The central bank said it will continue to monitor lending conditions as part of its price and financial stability mandate.